We should never forget that in the smartphone, the smart part is us creators. If you get rid of music, images, videos, words and literature from the smartphone, you just have a simple phone that would be worth $50. Okay, let’s accept that there’s a lot of innovation in the smartphone, so let’s add $100 for this innovation – the remaining $300-$400 of the price should go to [the creators].
Obviously I think this is nonsense; most of the reason I have an iPhone is for Twitter, and to a lesser extent Instagram, Flickr, and so on. There’s also a bunch of articles in Instapaper, most freely published on the web. About the only non-free media I consume on the phone is music, almost all of which is in iTunes Match. In other words, the creators have been paid for the (small) use I make of their stuff on my phone; the rest goes into making, you know, hardware.
(It’s times like this that I wish I was a better writer, because what he said sounds so ludicrous I feel that I should have been able to refute it better, but hopefully you got the idea anyway.)